Launching a new company in the Republic of the Philippines necessitates precise compliance to the Revised Corporation Code . An essential initial requirements is naming a Treasurer-in-Trust. This individual serves a crucial role in securing the paid-up capital prior to the formal approval of the Certificate of Incorporation .
Defining the Treasurer in Trust?
Basically , a treasurer in trust Philippines incorporation is a temporary representative empowered to accept and hold the subscription payments of the nascent corporation . According to the Philippine regulations, all stock corporation is required to nominate someone to serve in this position.
Mandatory Criteria
In order to serve as a TITF, several qualifications are necessary:
Local Address: The appointee must be a resident of the country.
Integrity: They serve as a trustee, meaning they are strictly accountable for the capital.
Documentation : A notarized Treasurer’s Affidavit shall be filed alongside the registration papers.
The TITF Bank Account
treasurer in trust philippines incorporationtreasurer in trust philippines incorporation Prior to submitting applications to the SEC , the TITF needs to establish a temporary corporate deposit account.
Capital Placement : The founders transfer the required equity into treasurer in trust philippines incorporation this account .
Proof of Deposit: The financial institution provides a proof of funds verifying that the capital is secured for the future corporation .
Fund Locking: These deposits are usually restricted until such time the government approves the incorporation .
Importance of Correct Handling in Incorporation
Failing to properly manage the treasurer in trust process can lead to delays . The SEC meticulously checks the financial disclosures to verify that the money physically is available in a Philippine bank.
After Approval to a Full Treasurer
After the company receives its SEC certificate, the role treasurer in trust philippines incorporation of the treasurer in trust shifts. The temporary bank account is upgraded into a standard business account. At this point , the board of directors can officially confirm a regular Treasurer who will oversee the firm’s fiscal operations.
Summary
Handling the legalities of a treasurer in trust is a critical step of starting a venture in the Philippines. By making sure that the treasurer is a resident treasurer in trust philippines incorporation and that the TITF account is properly set up , investors can efficiently complete the SEC requirements and begin their commercial activities.